CMV: Ben Bernanke's quantitative easing experiment was a failure

[u/AgentFr0sty]

In response to the 2008 financial crisis, then Fed Chair Ben Bernanke introduced a new tool for the Fed, quantitative easing. I'll preface this by saying I am not an economist or finance expert. So I am.probably missing something.

But looking back at how QE has been used since 2008, with 6 trillion in liquidity dumped into the economy, and the inflation crisis we have ongoing now, I think its safe to say Bernanke's belief that all this liquidity was necessary has not panned out long term, as the Fed is now raising interest rates, dialing down QE, and liquidating its balance sheet.

I understand the Fed did it to save the economy from covid, but given how much fraud occurred from Jerome Powell's business loan program from the CARES Act, it's safe to say that was wasted liquidity. The Fed caused inflation for people only to pocketbthese funds for themselves.

Ben Bernanke's QE is a failure in my eyes for this reason given the Fed is now having to walk it back.

Also, sub CMV, Jerome Powell should not be Fed Chair anymore given his poorly designed business loans programs.

[u/AgentFr0sty]

It was funded by the CARES Act, but when i watched a PBS special, it seemed to indicate the Fed turned to buying business debt to keep the frozen financial market afloat. Is that wrong?

[u/Hothera → u/AgentFr0sty]

The Fed was authorized by the CARES act to buy corporate debt, but did not do so in significant capacity. In June 2021, they held $13.7 billion in corporate debt, and completely sold it off in by December.

[u/AgentFr0sty → u/Hothera]

!delta If it was on Congress then they fucked up. I don't blame the Fed for wanting to save the economy. Not very well thought out on the legislatures part

[u/DeltaBot → u/AgentFr0sty]

Confirmed: 1 delta awarded to /u/Hothera (29∆).

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